Limited Technology Corp. uses a weighted-average process-costing system. Material A is added at the start of production; packaging material is introduced at the end. Conversion costs are incurred evenly throughout manufacturing.The following selected data were extracted from the company's production report:Units completed15,000Ending work in process (units)6,000Equivalent units: conversion cost16,800Equivalent units cost: material A ($)5Equivalent units cost: packaging ($)2Total conversion cost ($)134,400Required:A. Compute the equivalent-unit cost for conversion cost.B. How far into the manufacturing process is the ending work-in-process inventory?C. Would the total equivalent units for Material A and the packaging material be the same? Why?D. Compute the cost of goods completed during
the period.E. Compute the cost of the ending work-in-process inventory.F. What account would be debited to record the cost of goods completed during the period?
What will be an ideal response?
A. $134,400 ÷ 16,800 = $8
B.
| Total conversion units | 16,800 |
| Conversion units for completed production | 15,000 |
| Conversion units for work in process | 1,800 |
C. No. Material A is added at the beginning of production and would be part of the ending work-in-process inventory. Given that the ending work in process is only 30% complete, these goods have yet to reach the completion of manufacturing where packaging is introduced.
D. 15,000 × ($5 + $2 + $8) = $225,000
E.
| Material A: 6,000 × $5 | $30,000 |
| Packaging material | --- |
| Conversion cost: 1,800 × $8 | 14,400 |
| Total | $44,400 |
F. Finished-Goods Inventory
You might also like to view...
Longitude Company borrowed on a two-year, 10%, $150,000 note on May 1, with interest and principal to be paid at maturity. How much interest will Longitude report on its income statement for the year ending December 31?
a. $ 10,000 b. $ 15,000 c. $ 30,000 d. $ 5,000
A review of the business, organization and HR literature produced a definition for diversity. Which category has been used to define diversity?
a. Ethnic category based b. Gender category based c. Conceptual rule d. Cultural
When the NLRB believes that the union had majority support but extreme employer misconduct eroded support and renders a new election pointless, the NLRB can issue a _______________________________ to force collective bargaining.
Fill in the blank(s) with the appropriate word(s).
Chapter 17 bankruptcy allows a firm to be reorganized.
Answer the following statement true (T) or false (F)